2 Basic Materials Stocks Under $10 to Watch

DELAFIELD, Wis. ( Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

>>5 Stocks Set to Soar on Bullish Earnings

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.

>>5 Toxic Stocks to Sell Now

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside today.

Yanzhou Coal Mining

Yanzhou Coal Mining ( YZC) engages in underground coal mining, as well as preparation, processing, sale and railway transportation of coal. This stock closed up 6% to $7.72 in Tuesday's trading session.

Tuesday's Range: $7.63-$7.76
52-Week Range: $6.68-$18.57
Tuesday's Volume: 350,000
Three-Month Average Volume: 377,491

>>4 Basic Materials Stocks Spiking on Big Volume

From a technical perspective, YZC gapped higher here right above some near-term support at $7.13 with decent upside volume. This stock has been downtrending badly for the last five months, with shares trending lower from its high of $14.86 to its recent low of $6.68. During that move, shares of YZC have been consistently making lower highs and lower lows, which is bearish technical price action. Shares of YZC have now potentially started to reverse its downtrend, with the stock uptrending over the last month. This stock is quickly moving within range of triggering a near-term breakout trade. That trade will hit if YZC manages to take out some near-term overhead resistance levels at $8 to its 50-day at $8.51 with high volume.

Traders should now look for long-biased trades in YZC as long as it's trending above $7.13 and then once it sustains a move or close above those breakout levels with volume that hits near or above 377,491 shares. If that breakout hits soon, then YZC will set up to re-test or possibly take out its next major overhead resistance levels at $10 to $10.67. Any high-volume move above those levels will then put its next major overhead resistance levels at $11.11 to $12.38 into range for shares of YZC.

If you liked this article you might like

China Stocks Are on Fire but There’s One Tech Name Lagging

One Stock to Catch Up With China

One Stock to Catch Up With China

Winners and Losers From Obama's Anti-Coal Efforts to Cut Carbon Emissions

Big Coal Is Downsizing in China, and Stock Investors Like It

3 Stocks Under $10 in Breakout Territory